The US Securities and Exchange Commission’s (SEC) Division of Corporation Finance released an updated version of its crypto asset FAQ on September 28, 2026. The revision follows the original September 25 FAQ and builds on the March Interpretive Release that classified XRP as a digital commodity.
Key themes in updated SEC guidance
According to EGRAG CRYPTO, a widely followed cryptocurrency analyst, the latest FAQ emphasizes the importance of an asset’s functionality, practical utility, and decentralization in the SEC’s assessment process.
While the guidance does not have legal force, SEC staff confirmed this status in the document itself. Nonetheless, EGRAG CRYPTO noted that the clarity around crypto classification is significant, particularly for XRP and similar assets.
The updated FAQ underlines that a crypto asset is not automatically an investment contract, and functional networks can continue to be maintained and upgraded without necessarily being associated with essential managerial efforts.
The March Interpretive Release officially recognized XRP as a digital commodity, and the September FAQ provides further clarification on criteria that distinguish functional crypto networks from investment contracts.
Mini dictionary: Howey test, a US legal test established by the Supreme Court to determine whether a financial transaction qualifies as an “investment contract” and therefore should be considered a security under federal law.
Functionality and promotion under SEC rules
EGRAG CRYPTO emphasized the SEC’s position that once a crypto system achieves functional status, actions to secure, maintain, or improve the network are not classified as “essential managerial efforts” under the Howey test. This distinction narrows the possibility that active and decentralized crypto networks will be labeled securities.
The FAQ also addresses promotional activities. SEC staff clarified that simply promoting a cryptocurrency’s current utility does not automatically signal a commitment to managerial efforts. Such promotion is treated differently from statements promising profit or implying future management interventions.
Announcing buybacks by a functional crypto network without a central party does not represent a promise of essential managerial actions, giving these networks greater operational flexibility.
The SEC’s updated guidance allows functional, decentralized crypto networks to implement buyback programs without raising automatic investment contract concerns.
Regulatory momentum for XRP and similar assets
This FAQ update arrives amid a broader regulatory shift at the SEC. The March Interpretive Release declared XRP a commodity, and subsequent guidance, including the latest FAQ, has expanded on those definitions.
EGRAG CRYPTO’s overview highlights that functionality, utility, and decentralization remain central to the SEC’s assessment framework. XRP, operating on a decentralized and functional network, now has additional guidance reinforcing its classification as a digital commodity.
Institutional participants considering XRP can now rely on expanded staff-level direction, supporting its non-security status under current regulatory frameworks.
